Friday, February 24, 2012

Omnivision Quarterly Earnings Call

Seeking Alpha published Omnivision's quarterly earnings call transcript. Few interesting quotes:

Shaw Hong, CEO:

"...we recorded revenues of $185 million... On a non-GAAP basis, gross margin was 24.7% and net income was $7.4 million.

...we introduced a second next generation piece of architecture called OmniBSI+... this new architecture gives us the opportunity to maximize the utilization of our 8-inch wafer capacity.
"

Ray Cisneros, VP WW Sales:

"...we shipped 143 million units as compared to 153 million units in our prior quarter. The average selling price in our fiscal third quarter was $1.29 as compared to $1.42 in the prior quarter. The step-down is due to a reduction in higher resolution sensor product mix.

...VGA represented approximately 59% of total shipments as compared to 53% in the prior quarter.
"

Anson Chan, CFO:

"The decrease in margin is really attributable to decrease in ASP as well as the shipment of inventory that we built up accumulated in the past two quarters. The cost basis of these items are relatively high because we’ve build them before we had the chance to improve the yield and get some pricing cost reductions. On a cost basis essentially we’re locked in at the time when the inventory avenues were built.

And on top of that the yield issues that we ran into in prior quarters, when we first built our 8-megapixel OmniBSI-2 products and that translated into additional costs during the third quarter.
"

PR Newswire: Omnivision ended the period with cash, cash equivalents and short-term investments totaling $236.5 million, a decrease of $228.3 million from the previous quarter. The decrease includes approximately $100.0 million in cash used for the repurchase of the Company's common stock. The decrease also includes approximately $26.0 million in cash paid to VisEra for the acquisition of the CameraCube production operations from the entity during the second quarter of fiscal 2012.

Based on current trends, the Company expects next quarter revenues will be in the range of $195 million to $215 million.

MSNBC: Omnivision's revenue surpassed Wall Street estimates, and the company also forecast a better-than-expected fourth quarter. Its shares jumped $1.97, or 12 percent, to $18.05 in aftermarket trading.

Update: Here is Oppenhemer's analysis of Omnivision results:

Positives: The beat on revenues for F2Q12 and much better than expected guide on revenues/EPS for F3Q. OVTI is doing well in the entertainment (tablet +) category and expects to pick up in the smartphone category as well in the coming quarters. Automotive design wins in Japan also impress. Windows 8 tablets to come.

Negatives: Worries persist on whether BSI-2 yield problems are truly fixed when emphasis was put on OmniBSI+ on 8" platform during the prepared remarks. This will continue until a marquee win is achieved. Also, "Cameracube" capacity is currently under-utilized but will be used better in 2H12.

7 comments:

  1. 1.29$ per sensor !!!!!

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  2. It's not bad considering that 59% of them are VGAs. Last time I checked, consumer grade VGAs were $0.3 a piece.

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  3. How did they manage to get results as positive as this after loosing all of the APPL business? It should have been much worse. Also, revenue expectations for the next quarter look too positive without APPL sales.

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    1. Why you say "without APPL sales"?

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  4. Is is funny to understand what Anson explain why their cash balance is 100M short.

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  5. Some people just don't know what Apple are selling?

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  6. I think it's unfair to assume that OV has no future business with Apple based on not being found in a few products. Apple sells a lot of images and is not likely to completely abandon what has been a major supplier.

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